New
York City Transitional Finance Authority Fiscal 2000 Series
B Bonds Receive Strong Demand from Retail and Institutional
Investors

The
New York City Transitional Finance Authority (the "TFA") announced
today that it successfully priced its Fiscal 2000 Series B
Bonds. The transaction had both taxable and tax-exempt components.
The tax-exempt bonds totaling $560 million were sold on a
negotiated basis through the TFA's underwriting syndicate
led by book-running senior manager Bear, Stearns & Co. Lehman
Brothers and Morgan Stanley Dean Witter served as co-senior
managers on the tax-exempt portion of the deal. The taxable
$40 million portion was sold by competitive bidding. Ten bids
were submitted for the taxable bonds. Nine of the bids were
submitted electronically through Thomson Financial Municipals
Group Parity Electronic Bid Submission System. First Union
Securities, Inc. submitted the winning bid with a true interest
cost of 7.337171 percent.

The
transaction was structured with serial maturities beginning
in 2002 through 2021 and included two term bonds in 2024 and
2029. Yields (interest rates) ranged from 4.50 percent in
the 2002 maturity to 6.21 percent in the 2029 term maturity.

Institutional
demand for TFA's bonds was strong and broad based. The approximately
$404 million of bonds offered to institutions net of retail
pre-sale orders and retention were oversubscribed one and
one third times by the $537 million of priority orders from
institutions.

The
sale was preceded by a two-day retail order period that opened
on Friday afternoon, January 21 and concluded on Monday afternoon,
January 24. The $101 million of retail pre-sale orders totaled
18 percent of the tax-exempt bonds offered. The first five
maturities were completely pre-sold in the retail order period.

This
bond sale is the second of three TFA bond sales scheduled
for issuance in Fiscal Year 2000 ending June 30, 2000, the
proceeds of which will be used to fund the ongoing capital
program of the City of New York. The Fiscal 2000 Series B
bond issue will close on Wednesday, February 2.